Anax Metals (ASX: ANX) has successfully raised approximately $10 million to bolster its balance sheet, repay debt, and fund ongoing development and exploration activities for its Whim Creek project.
The company has announced a two-tranche placement to raise $10 million at $0.023 per share.
The raise will result in the issuance of approximately 434.8 million new shares.
Proceeds from this capital raise are earmarked to fund project development, exploration, working capital, and to repay the $3.5 million Jetosea Loan B.
Repaying this loan also removes a 2.5% Net Smelter Royalty (NSR) that was attached to the debt.
Strengthened Balance Sheet and Liquidity
The capital injection results in a pro forma cash position of approximately $7 million after the Jetosea loan repayment.
This improved financial standing strengthens the company ahead of further debt and off-take discussions for up to $57 million in further funding for Whim Creek project development.
Previous Definitive Feasibility Study (DFS) updates for Whim Creek highlighted strong project economics with a 10-year mine life and rapid payback, as detailed in the February 2026 update.
Tranche 1 of the placement, representing 225.5 million shares, settled on 25 March 2026 and began quotation on 26 March 2026.
Tranche 2, comprising 209.2 million shares, is subject to shareholder approval at an Extraordinary General Meeting (EGM) in mid-May 2026.
The issuance of new shares in a capital raise can lead to dilution for existing shareholders, meaning their ownership percentage in the company may decrease.
While Tranche 2 awaits shareholder approval, the capital raised addresses immediate financial needs, enables debt repayment, and supports ongoing exploration and development efforts.
